Executive Summary 

OVERVIEW

In recent years, the Chicago Transit Authoritys (CTA) budget has been developed around meeting the challenges of a struggling economy. With public funding coming in 
below projections over the past three years, strong efficient management is an absolute requirement. The CTA has focused on achieving its goals and maintaining productivity with fewer resources. 

To offset the impact of declining funding, the CTA implemented internal cost cutting measures. The CTA has implemented mandatory furlough days, deferred salary 
increases, placed strict controls on labor costs, designed methods to save on materials and fuel, increased efficiency through the management of contracts, eliminated nonessential travel and seminars, and reduced the cost of equipment maintenance. 

In 2010, due to the cumulative effect of funding shortages, service reductions and corresponding layoffs of employees were necessary to balance the budget. The 
reductions were designed to preserve as much service as possible, particularly during the rush periods. Although these reductions touched service across the system, riders made the best of it and adjusted their travel patterns accordingly. As a result, ridership is tracking very close to 2009 levels through the first part of the year. 

Rather than view the service reductions as a cost-cutting challenge, management tried to approach this downsizing as an opportunity to improve the way the agency is 
managed and to become more strategic on every level of operation. By carefully looking at bus ridership trends, areas of demand and where reductions would have minimal impact, a new service plan was developed. The new service plans assigned the most reliable equipment with the highest capacity to those routes that had the heaviest demand. The bus fleet was redistributed according to these plans and labor reassigned to support driving and maintenance needs. This strategy has paid off  the agency executed a carefully designed plan that is achieving the projected savings while meeting the demand for service. 

Because the revenue sources the CTA relies on for its public funding are very sensitive to the economy, and it has become evident that economic recovery is a slow process, financial challenges remain on the horizon for 2011. Even in the toughest of times it is possible to pursue goals and manage efficiently while working with limited resources. The CTA is committed to maintaining fiscal discipline while safeguarding service for customers. For 2011, the CTA plans to keep service and fares at their current levels. 

Despite the serious financial challenges, the CTA has made great strides over the past year. Here are some of the highlights: 

 Completed a major $530 million renovation of the Brown Line, on time and on budget; 
 Secured federal funding and completed one of the first and nationally showcased stimulus projects within a yearalso on time and on budget; 
 Added additional hybrid buses to the fleet; 
 Launched a major expansion of the security camera network to enhance safety and security; 
 Re-emphasized initiatives aimed at making the CTA a customer-focused organization;
 Introduced the next generation of trains; and
 Improved transparency;   

Despite financial constraints, the CTA continued to innovate in 2010 and apply the best solutions to keep Chicago moving while providing over half a billion rides in the city and suburbs. 

2010 ACCOMPLISHMENTS

This past year there have been many areas in which strategic investments have greatly enhanced benefits for customers. These investments fall into three broad categories: 

1. Responsible, efficient management; 
2. Infrastructure; and 
3. Technology. 

Initiatives in these areas have provided success stories and helped lay the foundation for future improvements. 

1. Responsible, Efficient Management 
Much has been improved behind the scenes that has helped the CTA become a more efficient and responsive organization. Such improvements range from policy changes to increased transparency to improved efficiencies. 

Efficient Management 

Strong, efficient management is an absolute requirement for public agencies. As stewards of public assets, ultimately public agencies are accountable to the taxpayers. 

All CTA departments were instructed to streamline costs while maintaining the agencys core mission of providing on-time, clean, safe, courteous and efficient service. In 
preparing the 2011 budget, $53.6 million in management efficiencies were identified to help the agency weather the continued economic challenges while not adversely 
impacting the current level and quality of service provided to customers. 

Approximately $36 million of the cost savings will be from personnel efficiencies. The CTA will save close to $7.2 million in salaries and benefits by eliminating more than 70 positions, including more than a dozen at manager level. A savings of $13.7 million in salaries and benefits will be achieved by delaying hiring for positions that are not safety related or critical to the operation of service. Continuing to manage and control overtime is expected to save an additional $5.5 million in next years budget. In 2011, non-union employees will again forgo wage increases and will be required to take up to 18 unpaid days for an additional savings of $9.7 million. 

In addition, the CTA will save approximately $17.5 million as departments continue to aggressively streamline operations and reduce expenditures such as fuel, power, 
materials and contracts in 2011. 

Sustainability 

Transit provides tremendous benefits to this region. It dramatically reduces congestion and provides access to jobs, health care and education to millions of people each day. It is widely recognized as integral to preserving the environment because it enables the efficient movement of people throughout the region and it can help reduce air pollution, particulate matter and greenhouse gases. 

Sustainability is about practices that make good business sense and good environmental sense. Whether it is employing practices in design and capital construction, operations and maintenance or using community-based strategies to encourage compact land use and transit-oriented development, there are many ways that transit can be even more green. In 2010, an internal Green Team was established, dedicated to advancing green initiatives at the CTA and identifying potential funding for these projects. 

The agency also is key to the Chicago Climate Action Plan by reducing energy use and emissions. In addition, the CTA has contributed to the Illinois Climate Change advisory group. 

The CTA practices sustainability through its use of hybrid buses, its Leadership in Energy & Environmental Design (LEED) Gold certified headquarters, and its active 
pursuit of initiatives to reduce energy consumption. 

Since 2007, total bus fleet emissions have decreased by more than 30 percent. The decrease in fleet emissions is a result of new CTA buses that are equipped with low 
emission engines, the number of hybrid buses in the agency's fleet and the use of ultra low sulfur diesel fuel combined with clean diesel technology. There are 228 articulated hybrid buses in the CTAs fleet that help to save over $7 million annually in parts, labor and fuel. 

This year the CTA began using one of its hybrid buses as a green ambassador. The EcoBus makes appearances at environmental events, provides information on the 
benefits of hybrid engines and reminds customers of the importance of taking public transportation to help the environment. 

The new rail cars, currently undergoing testing, convert direct current (DC) power to alternating current (AC) power. This allows the energy to be transferred back to the electric grid during braking, allowing this energy to be reused. 

Further, since the 1980s, the CTA has been installing bus and rail car washer systems that have built-in water recycling. Used wash water is treated through a filtering and settling process and then recycled back to washers. The CTA also recycles engine oil and antifreeze at all seven bus garages, lead acid batteries at all rail yards, metal from all rail and bus shops, plastic from bus shelters, paper and cardboard at offices and facilities, and dry cell batteries from office locations. 

Biometric Time and Attendance System 

Implementation of a biometric time and attendance system that will allow the agency to centralize employee time and attendance records for enhanced recordkeeping began this year. 

The Auditor General and outside auditors hired by the CTA to review the agencys operations made recommendations on how the CTA could improve its policies and 
procedures. By implementing a biometric attendance system, the CTA is further in compliance with the recommendations and continues its efforts to become more efficient and improve accountability in its operations. 

DBE Program 

The CTA has made a number of changes to the Disadvantaged Business Enterprise (DBE) program in an effort to cultivate and develop relationships with community, local and small businesses. For 2010, the CTA established a 25 percent annual DBE agency goal for contracts funded out of the operating budget, which is one of the highest goals in the country. This is in addition to already very well established DBE efforts with the capital program. 

This benchmark will help promote growth of the program. It also will help level the playing field and make it easier for smaller businesses to get their foot in the door. 
Workshops and meetings have made it easier to introduce vendors to the program and helped to realize a 20 percent increase in DBE applications since last fall. Ultimately, more competition for contracts will yield better pricing and a better product. 

Vendor Database 

To improve the agencys transparency and foster business relationships, a searchable vendor database was created. The database is available using the CTAs Web site at www.transitchicago.com and contains information on more than 46,000 contracts dating back to 2003. Vendors are able to view contract details, award amounts and payment information, which should assist them in their efforts to do future business with the CTA. 

2. Infrastructure 
Although the CTA as an agency is only 63 years old, some of its facilities and infrastructure have passed the century mark. Thereby, ongoing maintenance and einvestment is needed to keep the system running. 

Station Improvements 

A significant milestone within the last year was the completion of the Brown Line Capacity Expansion project. The project was completed on schedule in December. This 
$530 million investment expanded stations to allow for eight-car trains on the Brown Line. Demand for service has rapidly increased throughout the neighborhoods served 
by the Brown Line and longer trains and rebuilt stations have allowed the CTA to better meet that demand. In addition, 16 of the 18 stations included in the project were made newly accessible when construction was completed. The entire Brown Line is now accessible to riders with disabilities. 

In Chinatown, stimulus funds are being invested to make the Cermak-Chinatown Red Line station accessible and to rebuild the main entrance. The Red Line is also seeing improvements at the North/Clybourn station through an agreement with Apple Inc., and the Grand Red Line station is being renovated by the Chicago Department of Transportation (CDOT). Once completed, the Grand station will also be newly accessible. 

Additionally, CDOT is building a new station at Morgan and Lake streets that will serve the Green and Pink lines. This area has seen significant residential and commercial development and a new station will provide direct access to and from the downtown area and the industrial/commercial districts. 

Moving forward, the CTA will continue its efforts to develop plans to extend the Red, Orange and Yellow rail lines. Progress has been made on these projects over the last year as the processes required to apply for and secure funding continue to advance. 

Another area that is in need of attention and funding is the aging section of the Red Line on the North Side, as well as the Purple Line which serves Evanston and Wilmette. Last fall the CTA began to gather feedback on these lines to provide guidance for performing major rehabilitation work when funding becomes available. Several open houses were held to collect public input on existing conditions and what improvements should be considered when modernizing the facilities and infrastructure. 

Accessibility 

The CTAs commitment to providing a public transit system that is accessible to everyone is ongoing and the agency has made great strides toward delivering on that 
promise. Since the Americans with Disabilities Act passed 20 years ago, the CTA has had a number of significant achievements that have helped to make its bus and rail 
service more accessible: 

 Since 2005, all CTA buses have been accessible to riders who use mobility devices. All buses feature ramps, wheelchair securement devices, Braille signage, automated 
voice announcementsinterior and exteriorfor all stops and LED signage; 
 All CTA trains are accessible with at least two rail cars per train that feature designated positions for mobility devices, Braille signage and automated announcements; 
 Approximately 63 percent (91 of 144) of CTA rail stations are currently accessible by elevators or ramps. Two stations are now being renovated and two new stations will soon be constructed. All four will be accessible when work is completed; 
 Accessible rail stations feature tactile edging along the platform to assist in navigation and gap fillers to bridge the space between the platform and rail cars; 
 CTAs Web site, www.transitchicago.com, meets modern Web standards, as well as federal and state guidelines for accessibility; 
 Every two years operations personnel are recertified on employing proper procedures when assisting customers with disabilities; 
 Instructional materials are available that familiarize riders with accessible features of the system and how to contact CTA personnel for assistance when riding; and 
 Elevator status information is available online, by e-mail or TTY telephone, and in rail stations. 

Several other projects are currently under way that will further improve travel on the CTAs rail system for people with disabilities. These projects include the renovation of the Cermak-Chinatown and Grand Red Line stations; the construction of two new rail stationsthe Oakton Yellow Line and Morgan Green/Pink Line stations; installation of new LED elevator status displays at 77 rail stations; and the delivery of the new 5000 series rail cars that will feature two wheelchair positions per car, visual indicators and improved visual displays. 

5000 Series Rail Cars 

The CTAs most recent infrastructure-related achievement is the new prototype rail cars, which are currently being tested in service. The new rail cars will replace rail cars that are more than 40 years old. Consistent with the bus fleet and rail stations, each new rail car will be equipped with seven networked security cameras. 

The new cars also include glow-in-the-dark strips on floors that outline aisles and doorways, and similar decals and signage to display emergency instructions. They also 
feature an event recorder system similar to a black box on an airplane, and door sensors that detect obstructions better than the CTA's current rail fleet. 

There are also several safety features not on the prototype rail cars, but will be included on the final order. These features will include the ability for the rail operator to view the interior of each rail car and speak to the customers in that rail car using the intercom. The Chicago Police Department will have remote video surveillance access and the CTAs Control Center will be able to make emergency announcements and send text messages to the LED signs inside the train. 

Bus Rapid Transit 

This year the CTA, in conjunction with the Chicago Department of Transportation (CDOT), applied for and was awarded two grants to implement Bus Rapid Transit (BRT) pilots to improve bus transit options for CTA riders. Both grants advance the priorities of the Chicago Climate Action Plan, which recommends BRT as a way to reduce dependence on autos, thereby reducing emissions of greenhouse gases. BRT can also provide bus customers some of the speed and reliability of rail service without the costly infrastructure while improving valuable connections between residential and employment areas. 

The CTA is also testing a Traffic Signal Prioritization (TSP) system on two segments of Western Avenue. TSP extends a green traffic light or shortens a red traffic light by several seconds when sensing an approaching bus. A total of 10 intersections along Western Avenue are being used to test the TSP system. 

Deep Clean Initiative 

In a strategic shift on how the agency addresses cleanliness and repairs, the CTA began a deep clean initiative this year. Maintenance teams consisting of janitors and 
tradesmenpainters, carpenters, electricians, plumbers and masonsare deployed to stations to perform tasks in a unified effort. Previously, each trade would only go to the station when given a corresponding work order. The new deep clean initiative allows all of the work needed at each location to be completed much faster as all of the skill sets needed are present at one time. The work, which involves various repairs and cleaning activities at rail stations throughout the CTA system, will continue throughout the year. 

Stimulus Funding 

In 2009, the agency was fortunate in securing $241 million in capital funding through the federal stimulus bill. This money helped to improve travel conditions for customers through track replacement along the Blue Line; the rehabilitation of existing bus and rail cars; and the purchase of 58 new hybrid articulated buses. 

Now, with 228 hybrid buses in the fleet, about 13 percent of the CTAs fleet is hybrid. The benefits of having these buses in the fleet is already being realized through 
improved reliability of service, decreased operating costs and cleaner air. 

3. Technology 
Technology should complement a riders experience on the system. It should add value to the experience, improve ease of use, offer more and better information and establish a safe environment. 

Bus Tracker 

Bus Tracker has transformed the way Chicagoans perceive CTA bus service by taking the guesswork out of bus travel. Bus Tracker is a tool that predicts the arrival times of buses so riders may plan accordingly. 

Arrival information is available not only on the CTAs Web site, but on cell phones and Web-enabled devices. In addition to convenience, it adds a level of safety by minimizing the wait time for those traveling outside of their routine, either late at night or on those extremely cold winter days. 

A 2009 analysis of top Chicago searches on Google found that Bus Tracker was the second most searched item by Chicagoans. Perhaps even more impressive, that same survey indicated that the term CTA Bus Tracker was ranked as the fifth fastest rising search term in the U.S. via Google Mobile search. As such, the CTA remains the countrys largest resource for real-time public bus service data. 

At the end of 2009, a new tool was introduced to the CTA Bus Tracker suite: two-way texting. By sending a text message to the CTA, customers can receive the estimated arrival times of the next two buses at a designated bus stop. With this feature, another 46 percent of customers now have the ability to access Bus Tracker on the go. 

Next Train Arrival Pilot 

The enthusiasm surrounding Bus Tracker has spilled over to rail customers who have been eagerly awaiting a similar program for train arrival times. By the end of this year, 50 stations are scheduled to feature Train Tracker information. 

Future enhancements to the program include the possible addition of global positioning system (GPS) technology  in conjunction with other wireless technologies  which will provide more accurate estimated arrival times for trains. 

Developer Center 

Bus Tracker drove another innovation this yearthe creation of a Developer Center on the CTA Web site that simplifies the process of acquiring service data for Web 
application developers. There are many tech-savvy people who want to take CTA data and create new and useful applications. The data generated can be extended and 
applied in ways that are beyond the CTAs means and resources. The results are exciting and the possibilities almost limitless. 

Elevator Status Displays 

Technology is making it easier for the CTA to provide all types of information to customers in a more efficient and accurate manner. To improve this communication with 
riders who require accessibility at rail stations, the CTA began installing LED displays above the entry turnstiles at stations to provide the most current information on elevator outages. By providing this information at the station entrance it allows riders who need elevator access to check on the status of the elevators at their origin and destination station before they pay their fares. That way, customers have an opportunity to make adjustments or alternate travel plans should an elevator they need to access be out of service. 

The installation of these electronic elevator status displays is a small yet significant communication modification that provides a consistent and easy way to keep customers informed about which elevators on the system are out of operation. Accessibility relies on working equipment and there are times, either due to breakdowns or routine servicing, when elevators are reasonably not available for use. LED signs are being installed in three phases at a total of 77 accessible stations and are expected to be completed later in 2010. These displays will replace the erasable white boards located near the turnstiles at train stations that have been used to provide elevator status updates. 

Security Camera Network 

Technology is also transforming security on the system. Over the last decade, the CTA has invested in surveillance cameras that not only help deter crime, but also improve safety and help reduce costs. 

A current priority project is to equip every rail station with multiple security cameras. This will be accomplished by the end of 2010 with funding from the Department of 
Homeland Security. In May, the CTA reached a milestone toward that goal by having one or more cameras at each station, including high-definition cameras capable of 
zooming in and capturing facial features or details of an object. The quality of the images is remarkable and a great advance over the grainy images of first generation 
security cameras. 

Each camera provides an extra set of eyes not only for the CTA, but also for the Office of Emergency Management and Communications (OEMC) and police and fire 
departments. In the event of an emergency, each agency has access to the camera feeds and can assess the situation and determine what may be needed in response. 
The cameras are also valuable to police in conducting investigations as they have the ability to capture footage not just from CTA stationhouses and platforms, but the 
immediate surrounding areas as well. 

Retrofitting Rail Cars with Cameras 

Later this year, testing will begin on how to retrofit the current rail fleet with security cameras. Cameras are a very useful tool for law enforcement agencies during 
investigations. Still, the human element is crucial and cannot be replaced. Thats one reason why we continue to encourage both employees and customers to remain vigilant and report not only suspicious activity, but any acts of crime or harassment. If you SEE SOMETHING, SAY SOMETHING. 

Open Fare System 

A new initiative will transform the way customers pay their fares. Over the last dozen years, the CTA has made many improvements to its fare payment system, evolving from tokens to magnetic strip cards to the current smartcard technology used in Chicago Card and Chicago Card Plus. 

Technology is constantly evolving. This is why the CTA is looking to move toward the use of contactless credit cards, debit cards and prepaid cards to ride the system. The CTA has looked at models tested in cities such as New York, Los Angeles, Washington D.C. and San Francisco. However, since each transit system is different, the best approach must be determined and the intent is to let the marketplace help identify the best plan for the CTA. 

KEEPING THE FORWARD MOMENTUM: NEED FOR FUNDING

The CTA continually inventories and assesses the condition of its capital assets, from fleet to structure to buildings. The most recent review conducted in 2007 by the RTA in partnership with the CTA, Metra and Pace identified a $10 billion need for CTA over five years for new state capital investments. With only one major state capital plan approved in 20 years (Illinois FIRST in 1999), the regions system has been faced with challenges that include outdated equipment, deteriorating rail ties and tracks, and aging stations, resulting in slow zones and service issues. 

This is work that needs to be performed so that the system that exists today does not fall into a state of disrepair. The CTA has identified nearly $3 billion in funding toward these projects over the course of the next five years, so we are still in need of almost $7 billion more. 

The challenges of an aging system are not exclusive to the CTA. A 2010 report by the Federal Transit Administration determined that the transit agencies across the nation need more than $77 billion just to bring the agencies infrastructures to a state of good repair. In addition, a yearly average of $14.4 billion would be required to maintain the systems. The FTAs National State of Good Repair Assessment Study, requested by U.S. Transportation Secretary Ray LaHood provides a comprehensive analysis of the costs required to bring the nations rail and bus transit systems into good operating order. The 2010 study is based on data provided by rail and bus systems in both rural and urban areas. 

While transit remains one of the safest forms of transportation, this report shows the clear need for reinvestment. Investment in the nations transit infrastructure is important to a healthy economy and most importantly, the safety and well-being of riders. Although most of the $77 billion backlog can be attributed to rail, more than 40 percent of the nations buses are also in poor to marginal condition. What that means is that there are a lot of transit systems competing for a limited amount of federal funding so it is important that the CTA be aggressive about pursuing every opportunity. The agency continues to apply for funding wherever possible and will continue to do so; however, at this point, the investment in the system is not nearly at the level needed. State of good repair for the countrys transportation network is one of the five system-wide goals included in Secretary LaHoods proposed Strategic Plan for the Department of Transportation. 

Transit is one of the most effective economic engines for metropolitan areas, but all are struggling. Aging transit systems face the added pressure of deterioration of systems, and the safety and reliability issues that arise if maintenance and reinvestment are deferred. 

The CTA chairman and president have both traveled to Washington, D.C. and Springfield to make sure that the CTAs operating and capital funding needs remain on 
the radar. 

Through the states proposed mini-capital bill in 2009 and the Illinois Jobs Now Program, the State of Illinois has committed $1.3 billion to the CTA over the next five years. Once those funds are received, the agency is ready with a list of projects that include overhauling buses, rehabilitating bus garages and rail stations, upgrading substations and replacing track to eliminate and prevent slow zones. 

The funds promised by the state for CTA capital projects will also help position the CTA as it continues to apply for federal funds in Washington, D.C. In July, a group of Federal Transit Administration representatives were in Chicago to talk about funding issues. As part of that visit a tour of the system was conducted to help the FTA more clearly understand the challenges the CTA faces with a system that has been in service for a century. 

The federal transportation funding bill (SAFETEA  LU) expired nearly two years ago so transit systems have been relying on short-term extensions of federal programs for funding. The CTA also continues to apply for grant opportunities and works closely with the Illinois congressional delegation to get support for those applications. 

In fact, in 2010, the CTA submitted 43 applications under these programs that total approximately $835.6 million. While many of the applications are pending, the CTA has been awarded approximately $13.5 million for BRT and various energy-efficiency projects. The CTA will continue to aggressively pursue additional funding under these competitive grant programs. 

The CTA is committed to serving its customers. As we move ahead into 2011 and beyond, the agency will continue to look for the most efficient operating methods and call upon the resourcefulness of staff to help reduce costs and increase revenue. The focus remains on maintaining and continually improving the level of on-time, clean, safe, courteous and efficient service provided to customers. 